Taxi Driver Online

After the tax-cutting Autumn Statement, the disastrous taxi tax should be next

publicity piece from the daily excess

The Chancellor has no time to waste to stop yet another unfair tax on the British public, warns cabbie Gareth Cadwallader
By GARETH CADWALLADER
18:32, Wed, Nov 22, 2023 | UPDATED: 20:44, Wed, Nov 22, 2023

My job involves interacting with all kinds of people. I go from taking vulnerable kids to school at the start of the day to bringing people home after a good evening at the pub, sometimes too good.

I see every age group from all manner of backgrounds. The old ladies who need me to run them to the supermarket to do their weekly shop or take them for a check-up at the hospital. I know from the anxious glances at the meter as we sit idling away in traffic that people’s budgets are becoming smaller and smaller.

Put simply, this is yet another tax on the British public at a time when the tax burden is already at a post-war high, one that will hurt families, small businesses and vulnerable people who rely on taxis for essential journeys.

The cost of living crisis is real and it is affecting people. That is why I’ve been so worried about the recent High Court ruling that could lead to VAT being slapped on the cost of a cab. I don’t think we can pretend that this would be anything but disastrous for the cab sector and those who rely on us to get about.

We’ve had some extremely challenging years of late and many cab operators are on their knees struggling to recover from Covid. As for those who rely on us, many areas with poor access to public transport already have less than 1 licensed vehicle per 1,000 people.

People agree with me. 68% of the public polled recently were opposed to a VAT rise of 20% on minicabs. That’s why today’s announcement by the Government that they will consult on the effect of the verdict of the court ruling is an excellent step in the right direction.

There is no time to waste if we are to stop this unfair and damaging tax being slapped on cabs across the country.

Gareth Cadwallader is a minicab driver from Shrewsbury and spokesperson for Stop the Taxi Tax

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

If it comes in we will have to deal with it.

Yes, it will make our fares 20% more, but I also like the idea of 20% cheaper vehicles to buy.

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IDFIMH

The driver won't be liable for VAT, though, so unless it's an operator buying vehicles and reclaiming VAT then can't see how it would help...unless I'm missing something?

Anyway, had a quick look at the Stop the Taxi Tax webpage, and even without going through it all with a fine tooth comb, noticed a couple of obvious clangers:



https://ntia.co.uk/stop-the-taxi-tax-campaign/

Think the concern here is the driver is a taxi driver and it's the work he gets direct.

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IDFIMH

Sussex, well it would depend on the specific scenario, but for most grassroots drivers I doubt things would change much, because they'd still be well below the VAT threshold of £85,000.

But isn't the £85,000 when you must register for VAT, whereas under that you can?

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IDFIMH

Not sure if we're at cross purposes here, but never really an argument for accounting for VAT on fares unless you absolutely have to, because the reclaimable VAT is nothing like the payable VAT.

It will only make fare more if the work comes through a VAT registered operator. However some seem to think it will go the other way and fares will be Zero rated like all other forms of public transport.

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Grandad,

Just pay up, so us poor pensioners can keep the triple lock.

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Former taxi driver